Advocates Call for Higher Alcohol Taxes To Address Rising Alcohol-Related Deaths

On Tuesday, October 28, youth and community advocates gathered in Quezon City for a creative action entitled “So Cheap, So Deadly: Reduce Alcohol’s Reach,” calling for higher alcohol taxes. The event was held in response to the increasing cases of alcohol-related illnesses and deaths, especially among the youth. Forty-seven tombstones bearing anti-alcohol statements were laid at the Boy Scout Circle to symbolize the 47 Filipinos who die every day due to alcohol-related causes.

In the 2023 Global Burden of Disease (GBD) study by the Institute for Health Metrics and Evaluation (IHME), 17,088 Filipinos died from alcohol-related causes, with approximately 47 deaths per day and 2 deaths per hour. About 2.58% of all deaths in the country are attributed to alcohol consumption, including car crash incidents and alcohol-related illnesses and injuries. Similarly, 9.24% or 2,668 cancer deaths in the Philippines are also caused by alcohol. Of these 2,668 reported deaths, 1,205 were due to liver cancer, while 536 were due to colon and rectal cancer.

First in the roster of speakers was youth leader and UP Economics student Gwyneth Barra. In her speech, she stressed that the sin tax law can address high consumption and easy access to alcoholic products, especially among the youth.

“Some people might say that this is regressive. We think it’s justified because this tax will go to the health sector. Also, it could be said that only the poor will be affected by this, but in the long run they will also be the beneficiaries because this tax will go to the development of health programs that they could benefit from,” she said.

She considered the increased consumption of alcoholic products as a social cost that often results in an inefficient distribution of goods in the market, economically referred to as market failure. She believes that the sin tax law will address this market failure by making alcoholic products more expensive and less accessible, especially to the youth.

According to the same GBD data, the recorded direct cost totaled PHP 85.4 billion, while the indirect cost was approximately PHP 170.8 billion. It leaves a total economic burden of alcohol in 2023 of at least PHP 256.2 billion. However, the total revenue collected from alcohol taxes amounted to only PHP 108.20 billion. The data explicitly shows that the total economic burden of alcohol outweighs the revenue generated from it.

Action for Economic Reforms Legislative Officer Paul Roset amplified the call for increasing alcohol taxes as the country continues to suffer from rising alcohol-related deaths. He urged legislators to consider that these deaths can be prevented through reforms and the implementation of higher alcohol taxes.

“Our alcohol excise tax in the Philippines is considerably lower than other ASEAN region. Accounting for inflation, the tax is too low. Our proposal is to have a 25% or PHP 9 increase in taxes for distilled spirits or gins which the masses commonly consume. A 10% increase for fermented liquor or beers. Alcopops or flavored alcohol beverages should also be taxed as fermented liquors,” said Paul.

Dr. Allandale Nacino of the Philippine Addiction Specialists Society (PASS) represented the health professionals at the event. He voiced the medical community’s call for immediate action in response to the rising cases of alcohol-related deaths. Dr. Nacino emphasized the need to protect the youth and future generations from alcohol-related harms, to lessen and delay alcohol consumption among young people, and to ensure more equitable funding for health services.

“As Filipinos visit cemeteries this November, two graves are added every hour, and one could be a child’s grave. As a member of the health sector, it is important to conduct such activities to highlight the harmful effects of alcohol. It is important to emphasize and spread awareness about these health effects of alcohol, especially among the general public,” he called out.

Bataan 1st District Representative Antonino Roman III was also present to urge all concerned groups to participate in the movement. He emphasized that this initiative is not a form of punishment, but instead a preventive measure to ensure that the youth grow up in a healthy environment. He claimed that increasing alcohol taxes is a practical and proven approach to address the overwhelming dangers posed by alcohol.

“I don't think it will hurt the pockets of alcohol beverage companies. It will increase government revenue which can be allocated to Philhealth to help Filipinos on paying hospital and professional fees,” Roman claimed.

Republic Act 11467 outlines that 60% of alcohol tax revenues are allocated to the Philippine Health Insurance Corporation (PhilHealth), 20% goes to the Health Facilities Enhancement Program (HFEP) and Medical Assistance to Indigent and Financially Incapacitated Patients (MAIFIP), and the remaining 20% is allocated for programs supporting the attainment of the Sustainable Development Goals (SDGs).

The creative action was attended and supported by representatives from various youth and community groups, including Sin Tax Coalition, 1Tahanan Partylist, Action for Economic Reforms (AER), and Gugma PR.

-The Oikonomos Nexus (Facebook)